Globalstar (NYSE:GSAT), Inc. (NYSEAMERICAN:GSAT) CFO Rebecca Clary has sold a significant number of company shares, according to the latest regulatory filings. Clary, who serves as the Vice President and Chief Financial Officer of the satellite communications company, disposed of 75,000 shares at a price of $1.39 per share, totaling over $104,000.
The transaction, which took place on March 15, 2024, was carried out under a prearranged trading plan. This plan, known as a Rule 10b5-1 trading plan, was adopted by Clary on June 28, 2023. Such plans allow company insiders to sell shares over a predetermined period of time, to avoid concerns about transactions based on access to non-public information.
Following the sale, Clary still holds a substantial stake in the company, with 1,568,745 shares remaining in her possession. These shares are held directly, as indicated by the regulatory filing.
Investors often monitor insider transactions for insights into management's perspective on the value of the company stock. While sales under Rule 10b5-1 trading plans are scheduled in advance, they can still provide useful information about insider sentiment.
Globalstar, headquartered in Covington, Louisiana, operates in the communication services sector, providing mobile satellite services and satellite communications solutions. The company's stock is listed on the NYSE American and trades under the ticker symbol GSAT.
InvestingPro Insights
As Globalstar's CFO Rebecca Clary sells a portion of her shares, investors may find it worthwhile to consider some real-time data and InvestingPro Tips for a broader understanding of the company's financial standing. According to InvestingPro, Globalstar has been trading at high valuation multiples, with a Price / Book ratio as of the last twelve months of Q4 2023 at 8.27. This could suggest that the market has high expectations for the company's asset value or future growth.
Moreover, Globalstar has shown impressive revenue growth, with a 50.71% increase over the last twelve months as of Q1 2023. While this growth is a positive sign, it is important to note that analysts do not expect the company to be profitable this year, which may be reflected in the CFO's decision to sell shares. The company's EBITDA also grew significantly by 142.91% in the same period, indicating some operational efficiency improvements despite the lack of net profitability.
InvestingPro Tips highlight that Globalstar operates with a moderate level of debt and has not been profitable over the last twelve months. Additionally, the stock has performed poorly over the last month, with a price total return of -16.57%. These factors could be influential in insider selling decisions and are essential considerations for potential investors.
For those looking to delve deeper into Globalstar's financial metrics and insider perspectives, InvestingPro offers a comprehensive array of additional tips. In fact, there are 11 InvestingPro Tips available for Globalstar, which can be accessed at https://www.investing.com/pro/GSAT. To enhance your investment research experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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